Relying on an inheritance to fund your retirement could prove to be a risky strategy. Whilst many people polled for a recent survey1 expected to receive more than £100,000, this assumption could prove wide of the mark. Figures from the Office for National Statistics2 show that only one in ten people inherit more than £125,000.
Increased longevity and the mounting cost of nursing & residential care could mean that the older generation has substantially less to leave to their heirs.
How to plan for the future
Many people postpone retirement planning until they reach their mid-40s. Arguably, pension planning should begin the day you start work. Even small sums saved regularly early on in your career can mount up over the years to create a reasonable pension fund.
Recent changes in legislation, including the introduction of auto-enrolment pensions and the advent of the Lifetime ISA, provide greater tax-efficient opportunities to plan and save for life’s major financial events, like buying a property or building up a fund for your retirement.
Please get in touch if you’re making plans for your retirement and need some professional advice.
1 Old Mutual Wealth 2017
2 ONS, Inheritance in Great Britain 2013